21 4 41V Weather Tonight: Chance of snow, low around 4. Tomorrow: Partly sunny, high 12%. One hundredfive years of edfitorilfreedom Thursday February 1., 1996 t 0. 0~ Iterest rates cut by Federal Reserve Stock market soars as bank lending rates drop once again WASHINGTON (AP) - The Fed- eral Reserve cut interest rates for the second time in two months yesterday, hurrying to the rescue of a faltering onomy. Major banks immediately reduced their own lending rates, mean- ing lower borrowing costs for millions of Americans. The stock market, which had surged on Tuesday in anticipation of the Fed's credit relief, set another record yester- day. The Dow Jones industrial average closed at 5,394.94, up 13.73. Private analysts said further rate re- ductions were likely as the Federal Re- serve tries to stave off recession. i The Fed said it was cutting its target for the federal funds rate, the interest that banks charge each other on over- night loans, from 5.5 percent to 5.25 percent. It also reduced its largely sym- bolic discount rate, the interest it charges on direct loans to banks, to 5 percent. The actions should stimulate eco- nomic activity by lowering the cost of credit. But the Fed's statement said erely that the reductions could be ade because "moderating economic expansion in recentmonths has reduced potential inflationary pressures." Chase Manhattan was the first major bank to announce a cut in its prime rate, and other banks quickly followed suit. The prime rate, the benchmark formany business and consumer loans, was cut to 8.25 percent from 8.5 percent. Private economists, who had been urging the central bank to act, said they relieved yesterday's reduction in the funds rate, the third since July, would not be the last. "Given how soft the economy is, we are going to see more easing," said Lawrence Chimerine, chief economist at the Economic Strategy Institute in Washington. "The Fed overtightened a year ago and they have been moving too slowly to reverse that. We have a threat of a recession." 0 The central bank from February 1994 to February 1995 was increasing inter- est rates, doubling the funds rate from 3 percent to 6 percent in an effort to slow the economy to keep inflation in check. The economy did slow. But when the Fed's hoped-for "soft landing" threat- ened to turn into something worse, the central bank reversed course and trimmed the funds rate by a quarter point last July. While many economists expected a se- es of rate cuts, the central bank waited ntil December to trim again. The Clinton administration, which is hoping for a strong economy in this See ECONOMY, Page 2A Explosion rocks Sri Lankcapital COLOMBO, Sri Lanka (AP) - In one of the worst attacks in Sri Lanka's 12-year civil war, a truck packed with explosives rammed into the central bank yesterday, igniting tower- ing fires in the business and tourist district. At least 53 people died, including the driver, and 1,400 were wounded. Authorities blamed the attack and a fireball caused by a rocket-propelled grenade moments earlier on the Tamil Tiger rebels, whose 12- year armed campaign for an independent home- land has killed nearly 40,000 people. There were no immediate claims of responsibility. In the chaos after the midday attack, dozens of people were trapped atop burning buildings waving for help. Helicopter gunships bristling with machine guns tried to pluck survivors from rooftops but were repelled by the heat. Many were rescued by ladders; those on the streets were taken away in public buses and private cars. As darkness fell, soldiers armed with assault rifles patrolled the center of Colombo, and drizzling rain forced rescuers to scale back their hunt through unsteady buildings for bod- ies and survivors. The director of the National Hospital's trauma unit, Hector Weerasinghe, told The Associated Press that 53 people died. An addi- tional 1,060 injured people were admitted to two hospitals, 100 in critical condition. Scores of people released after treatment raised the estimated number of injured to 1,400. Most of the dead and wounded were in the Central Bank building, where Sri Lanka's gold reserves are held and the country's financial policy is made. Bank guard Prasanna Wijewardhana said a blue truck with three men drove into the secu- rity barricade outside the bank. Two men leaped out and started firing automatic weapons. Some guards returned fire, but many of them fled, Wijewardhana said. The attackers "had the advantage of surprise," he said. During the gunfire, a rocket-propelled gre- nade landed in front of a nearby office build- ing, gouging a crater and shattering windows at The Associated Press office 100 yards away. Police said the driver of the truck died in the explosion. Hours later, they arrested two oth- ers seen fleeing with automatic rifles about a mile from the blast. The bank building burst into flames, which spread to a half-dozen other buildings. The fires raged for much of the day and thick black smoke blanketed the city, hampering rescue See SRI LANKA, Page 2A a - ... , 4 s 'K ,r .,. w Tf.,nr 0 ) I " " AP PHOTO A colleague consoles an unidentified photographer (left) whose father is feared to be a victim in the bomb explosion in Colombo, Sri Lanka, yesterday. I MSA to recommend students to serve on advisory search panel By Laurie Mayk Daily Staff Reporter Michigan Student Assembly President Flint Wainess will present the assembly's recom- mendations for the presidential search committee's two student representatives at a meeting tomorrow with Provost J. Bernard Machen. "Hopefully we'll come to an agreement on names to forward to the regents," Wainess said. The University Board of Regents announced last month that it will include two students on the advisory search panel - a committee that will meet in ~--....... closed session to consider candidates for University president. Machen said that although the assembly's opinion will be considered, he has solic- ited nominations across cam- pus for one undergraduate and one graduate student rep- resentative and expects to.W continue deliberations after tomorrow's meeting. "They are not going to select the candidates," Machen said. "I will select the candidates. "I'll probably interview a number (of student candidates) before I make a final recommenda- tion," he said. Machen said he plans to make his recommenda- tions to the regents in mid-February. Wainess, who has been working with the re- gents and Machen to communicate student con- cerns about the search, said he expects no prob- lems reaching an agreement on the recommenda- tions. "MSA will be united behind this (recommen- dation)," said LSA Rep. Probir Mehta, campus governance committee chair. "We've already started soliciting a lot of people ... who are interested." CGC is responsible for appointing students to various leadership positions on University and city-wide committees. Mehta said CGC and Wainess will collaborate to choose the two "MSA-endorsed" students to- day. Machen, Wainess and Mehta have been accepting e-mail applications since the regents announced their plan for student involvement earlier this week. A list of student leaders used in appointing MSA committee chairs this fall has also been a resource for recruiting students, Mehta said. "People are talking about this (search) on the streets and at the libraries," LSA Rep. Fiona Rose said. "They're really interested in who will be at the helm of the University next year. MSA is not the only source for nominations, Machen said. He is .keeping a record of the nominations he has received, currently 15 to 20 student names, and the individbuals or group mak- ing the nomination. Machen said MSA is the only student group to request a meeting with him as of yet. The assembly was expecting more student representatives on the committee and more MSA involvement in the search, Mehta said. "We're slightly disappointed that MSA didn't get appointment powers to this committee," he said. Although the search committee meetings will be confidential, Mehta said he hopes the selected students will keep the lines of communication open. "They won't be able to say anything but we can tell them, 'You'd better listen to student concerns here,"' he said. Wainess said he expects MSA to play a more active role later in the search process. "When the regents publicly receive the nomi- nations of the advisory committee, MSA should play a strong role in commenting on those candi- dates," Wainess said. MARK FRIEDMAN/Daily Sorry, sad anld sulking Maurice Taylor looks downcast as Michigan falls to Purdue last night, 80-59. The blowout was the worst the Wolverines have suffered at home since the 1984-85 season. Students' Party slate -ump-starts MSA race t SAPAC celebrates 10 years of programming By Laurie Mayk Daily Staff Reporter Nearly two months before election day, the Students' Party announced its presidential slate Tuesday - kicking off the Michigan Student Assembly's winter '96 election season. Jonathan Freeman, MSA Interna- tional Student Affairs Commission chair, and LSA Rep. Olga Savic are the party's nominees for MSA president and vice president respectively. The first team to announce its candi- dacy, the ticket's vice presidential candi- date was a little reluctant to compete for the position, Freeman said. "Becoming president or vice presi- ent was never part of the grand scheme," Savic said. Savic said frustrations with the inter- nal workings of the assembly prompted her candidacy, after almost prompting her departure from the assembly. "If you leave, you're giving up," she said. "And I don't believe in giving up." gan Party administration, led by MSA President Flint Wainess and Vice Presi- dent Sam Goodstein, of stifling mem- bers with unpopular ideas and creating the "frustrating" environment that had alienated Savic. "MSA should be an exchange for ideas and empowering people when it's used right," Freeman said. "The presi- dent should be helping the assembly, whether he agrees or disagrees." "A real leader listens to what's going on and lets that shape what direction we're going to take," Savic said. Wainess questioned Freeman and Savic's abilities to generate those ideas. "Students want a reasonable, not a radical approach to student govern- ment," Wainess said. "Students want ideas, not ideology. Jonathan and Olga bring only ideology, not ideas." Wainess also criticized the Students' Party for the early release of its slate. "It's wasteful," he said. "It impedes good governance when people are poli- JOE WESTRATE/Daily Jonathan Freeman and Olga Savic, LSA Juniors, declared their candicacy yesterday as the Students' Party's presidential slate for the upcoming MSA election. By Rajal Pitroda For the Daily Eleven years ago, a group of Univer- sity students launched a sit-in in what is now the Office for Student Affairs. Their mission-to heighten awareness of the safety concerns of women on campus and to make apparent the need for a rape crisis center. Their request led to the formation of the Sexual Assault Prevention and Aware- ness Center, which opened its doors as a source ofprevention, education and coun- seling to the University community. February marks the beginning of SAPAC's 10th-anniversary celebration. The anniversary's highlight comes with rape prevention month in March with a keynote address by author Evelyn White. White, who wrote a book for black women in abusive relationships, will lecture on feminist issues. "We are very excited to have Evelyn White come to speak," SAPAC director Debi Cain said. "She carries with her some very powerful words." "We want to continue our efforts to expand throughout the year," said Joyce Wright, SAPAC prevention education coordinator. "Overall, our goal has been and will continue to be an effort to eradicate these problems." SAPAC began 10 years ago as a peer education and counseling program to deal with sexual assault. Now, the orga- nization conducts workshops for inter- ested students in residence halls, class- rooms and Greek houses. These workshops attempt to heighten awareness of problems that face students, and to provide them with possible solutions. SAPAC also has a 24-hour crisis line and outreach program, in which teams of two volunteers provide counseling to victims of sexual assault. "They provide victims with information on their rights and options, and are there with them as long as the survivor needs," Wright said. SAPAC also sponsors Safewalk and Northwalk, which provide nighttime walking services to students. "I wanted to do something that was the University has taught her that al- though there "are other ways than MSA to help students," an official position on the assembly may be the most effec- tive way to do so. "It's not always possible if you don't have some measure of power within the organization," Savic said. Freeman, an LSA junior experienced representative," Goodstein said. The executive power of the president and vice president needs to be used to support student groups on campus in any weather, Freeman said. "Our vision is that student services need to be supported - continually they are helped when they are in trouble and then forgotten," Freeman said. I